Private jute mills in Bangladesh are likely to get the same facilities the government gives state-owned jute mills. Jute mills are going through an acute financial crisis mainly due to a decline in exports of jute goods.

An advisory committee meeting of the Ministry of Textiles and Jute last year decided on sanctioning of fresh working capital for private jute millers, keeping their outstanding loans along with five years’ interest in a blocked account. The interest of five year loans up to June 30, 2014, will be deposited to the blocked account with two years’ moratorium. The advisory committee also urged banks to implement the decisions to keep the sector alive.

Millers also want use of the export development fund in case of import of capital machinery and spare parts and 30 per cent grant to purchase machinery from abroad. Export of jute and jute goods witnessed a 20 per cent drop while raw jute export experienced a decline of 45 per cent. At present, about 212 jute mills are in operation in the country. Of these, 21 are run by the government and the rest by private owners.

Private jute mills say they face a lot of difficulties in getting even simple loans, while state-run mills get various facilities including clearing bank debts, advance bank loan and incentives.